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2025 Tax Year

Montana Side Hustle Tax Calculator

Calculate your Montana state tax (5.90%), federal tax, and self-employment tax on 1099 income.

MT5.90%
1.1 million residents
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2025 rates
Always free

Last updated: January 2026 · Data from IRS Rev Proc 2024-40

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Montana side hustlers face a two-bracket progressive tax system with rates of 4.7% and 5.9%. The Big Sky State recently simplified its tax system and has no sales tax, which benefits side hustlers who sell physical products. Montana has no local income taxes.

Montana Tax Guide

How Side Hustle Taxes Work in Montana

Montana uses a simplified two-bracket system:

**Montana state tax rates (2025):** - 4.7% on income up to $20,500 (single) - 5.9% on income over $20,500

**Key features:** - No sales tax in Montana - No local income taxes - Recently simplified from seven brackets

For most side hustlers with W-2 income, the 5.9% rate applies to side hustle earnings.

Example

What Montana Side Hustlers Owe

Let's say you're a single filer in Billings with a $50,000 W-2 job and $15,000 in side hustle income from freelance photography, with $2,500 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $12,500 - Federal SE tax (15.3% of 92.35%): ~$1,768 - Federal income tax on side income: ~$2,750 (22% bracket) - Montana state tax (5.9%): ~$738 - **Total additional tax: ~$5,256**

Important Dates

Montana Tax Deadlines 2025

Montana estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use Montana Form ESA for state estimated tax payments.

Save Money

Common Deductions for Montana Freelancers

Montana deductions for side hustlers: - Montana has its own calculation starting from federal AGI - All Schedule C business expenses apply - Home office expenses - Business mileage (67 cents/mile for 2025) - No sales tax means product-based side hustles save on retail costs

Common Questions

Montana Side Hustle Tax FAQ

What is Montana's tax rate?

Montana has two brackets: 4.7% on income up to $20,500 and 5.9% on income above that. Most side hustlers pay the 5.9% rate.

Does Montana have sales tax?

No, Montana has no state or local sales tax. This benefits side hustlers who sell products—no sales tax to collect or remit.

Does Montana have local income taxes?

No, Montana has no local or city income taxes. The state rate is your only Montana income tax.

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